Real estate prices are at excellent levels compared to historical averages. Suffice it to point out that calves for the winter are currently quoted in US$3.90/kgIt is the highest value – in current dollars – in the entire history of Argentine livestock. If we compare it to the average of the past 10 years, which is US$1.70/kg, the current value is easily double it.. In constant currency, the all-time high for veal was – in today’s money – $5,500/kg, a level that only lasted for a few months in 2022. A similar situation was observed at Gorda Farm. He compares, saying: “From November 2024 to November 2025, the price of calves rose by 105% against inflation of 31%. In the same period, the price of a fat cow rose by 85%, while the weighted index of livestock inputs rose by 40%.” Ignacio Iriarte, Director of Livestock Report.
The reasons for this livestock scenario are varied. First of all, business over the past three months has been very low. Initially, this supply deficit was attributed to the uncertainty caused by the midterm elections; However, even with the positive results, business continued to decline.
The halt in production in millions of hectares in Buenos Aires province also had an impact, as well as the possibility of retaining the spring season, encouraged by expectations of higher prices. The supply shortage is coupled with very strong export demand. “Between 2024 and 2025, the global meat market will increase by 1.5 million tons and forecasts indicate that this favorable context may continue for several years.”planning to leave. The increasing global demand is closely linked to the pressures exerted by the American and Chinese markets For economic growth in Southeast Asian countries – the Philippines, Malaysia, Vietnam, Indonesia, and Thailand – Who continue to incorporate beef into their diets. In the face of this expansion, global supply – led by Brazil – is insufficient to supply new consumers and traditional demand, which determines increases in international beef prices. In parallel, Internal consumption ranges between 45 and 46 kg per person per year. Although it is a low level, it is difficult to imagine that it will continue to decline because the population is showing resistance to reducing consumption below certain thresholds.